SGX:D05

Stock Analysis Report

DBS Group Holdings

Executive Summary

DBS Group Holdings Ltd provides financial products and services in Singapore, Hong Kong, rest of Greater China, South and Southeast Asia, and internationally.


Snowflake Analysis

6 star dividend payer with excellent balance sheet.


Similar Companies

Share Price & News

How has DBS Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: D05's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.0%

D05

3.0%

SG Banks

5.3%

SG Market


1 Year Return

-28.8%

D05

-22.5%

SG Banks

-25.9%

SG Market

Return vs Industry: D05 underperformed the SG Banks industry which returned -22.1% over the past year.

Return vs Market: D05 underperformed the SG Market which returned -27.3% over the past year.


Shareholder returns

D05IndustryMarket
7 Day2.0%3.0%5.3%
30 Day-23.0%-12.7%-18.7%
90 Day-28.2%-20.9%-24.5%
1 Year-24.7%-28.8%-19.3%-22.5%-22.7%-25.9%
3 Year11.6%-3.4%-4.4%-14.6%-18.4%-27.1%
5 Year13.2%-8.6%-0.8%-18.4%-17.0%-31.2%

Price Volatility Vs. Market

How volatile is DBS Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is DBS Group Holdings undervalued compared to its fair value and its price relative to the market?

33.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: D05 (SGD18.57) is trading below our estimate of fair value (SGD27.95)

Significantly Below Fair Value: D05 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: D05 is good value based on its PE Ratio (7.5x) compared to the Banks industry average (7.6x).

PE vs Market: D05 is good value based on its PE Ratio (7.5x) compared to the SG market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: D05 is poor value based on its PEG Ratio (12.9x)


Price to Book Ratio

PB vs Industry: D05 is overvalued based on its PB Ratio (0.9x) compared to the XA Banks industry average (0.6x).


Next Steps

Future Growth

How is DBS Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

0.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: D05's forecast earnings growth (0.6% per year) is below the savings rate (1.8%).

Earnings vs Market: D05's earnings (0.6% per year) are forecast to grow slower than the SG market (4.9% per year).

High Growth Earnings: D05's earnings are forecast to grow, but not significantly.

Revenue vs Market: D05's revenue (4% per year) is forecast to grow slower than the SG market (4% per year).

High Growth Revenue: D05's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: D05's Return on Equity is forecast to be low in 3 years time (11.6%).


Next Steps

Past Performance

How has DBS Group Holdings performed over the past 5 years?

8.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: D05 has high quality earnings.

Growing Profit Margin: D05's current net profit margins (45.5%) are higher than last year (44%).


Past Earnings Growth Analysis

Earnings Trend: D05's earnings have grown by 8.8% per year over the past 5 years.

Accelerating Growth: D05's earnings growth over the past year (14.7%) exceeds its 5-year average (8.8% per year).

Earnings vs Industry: D05 earnings growth over the past year (14.7%) exceeded the Banks industry 8.1%.


Return on Equity

High ROE: D05's Return on Equity (12.4%) is considered low.


Next Steps

Financial Health

How is DBS Group Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: D05 has a low level of unsold assets or inventory.

Debt Coverage by Assets: D05's debt is covered by short term assets (assets are 1.5x debt).


Financial Institutions Analysis

Asset Level: D05's level of assets compared to its equity is moderate.

Allowance for Bad Loans: D05 has a low allowance for bad loans.

Low Risk Liabilities: D05's liabilities are made up of primarily low risk sources of funding.

Loan Level: D05 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: D05's loans are broadly funded by customer deposits.

Level of Bad Loans: D05 has an appropriate level of bad loans (1.49%)


Next Steps

Dividend

What is DBS Group Holdings's current dividend yield, its reliability and sustainability?

7.11%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: D05's dividend (7.11%) is higher than the bottom 25% of dividend payers in the SG market (3.27%).

High Dividend: D05's dividend (7.11%) is in the top 25% of dividend payers in the SG market (7.07%)


Stability and Growth of Payments

Stable Dividend: D05's dividends per share have been stable in the past 10 years.

Growing Dividend: D05's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.9%), D05's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: D05's dividends in 3 years are forecast to be covered by earnings (52.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.3yrs

Average management tenure


CEO

Piyush Gupta (59yo)

10.25s

Tenure

S$12,126,542

Compensation

Mr. Piyush Gupta has been the Chief Executive Officer of DBS Group Holdings Ltd and DBS Bank Ltd. since November 9, 2009. Mr. Gupta served as the Chief Executive Officer of South-East Asia & Pacific region ...


CEO Compensation Analysis

Compensation vs Market: Piyush's total compensation ($USD8.51M) is about average for companies of similar size in the SG market ($USD7.39M).

Compensation vs Earnings: Piyush's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Piyush Gupta
CEO & Executive Director10.25yrsS$12.13m0.074% SGD34.5m
Sok Hui Lim
Chief Financial Officer11.42yrsno datano data
Jimmy Ng
MD, Chief Information Officer and Head of Group Technology & Operationsno datano datano data
Michael Sia
Head of Investor Relationsno datano datano data
Chee Lam
MD and Head of Legalno datano datano data
Karen Ngui
MD & Head of Group Strategic Marketing and Communications14.67yrsno datano data
Yan Lee
Head of Human Resourcesno datano datano data
Su Shan Tan
Group Head of Institutional Banking (IBG)9.67yrsno datano data
Sim Lim
Group Head of Consumer Banking (CBG) & Wealth Management9.42yrsno datano data
Eng-Kwok Seat Moey
MD & Head of Capital Marketsno datano datano data

10.3yrs

Average Tenure

58.5yo

Average Age

Experienced Management: D05's management team is seasoned and experienced (10.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Piyush Gupta
CEO & Executive Director10.25yrsS$12.13m0.074% SGD34.5m
Paulus Sutisna
President Director of PT Bank DBS Indonesiano datano datano data
Lim Huat Seah
Non-Executive Chairman9.83yrsS$1.97m0.0095% SGD4.4m
Tian Yee Ho
Non-Independent Director1.25yrsS$418.00k0.0019% SGD882.8k
Yiu Kiang Goh
Non-Executive Director11.25yrsS$289.78k0.0023% SGD1.1m
Nihal Vijaya Devadas Kaviratne
Independent Director8.83yrsS$268.00k0.00015% SGD69.7k
Andre Sekulic
Independent Director7.83yrsS$312.50k0.0011% SGD511.1k
Foong Pheng Ow
Non-Executive Director7.83yrsS$246.00k0.0010% SGD473.9k
Sai Choy Tham
Non-Executive & Independent Director1.42yrsS$299.12k0.0035% SGD1.6m
Leong Kay Teoh
Non-Executive & Non-Independent Director9.42yrsS$308.75k0.0026% SGD1.2m

8.8yrs

Average Tenure

64yo

Average Age

Experienced Board: D05's board of directors are considered experienced (8.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

DBS Group Holdings Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DBS Group Holdings Ltd
  • Ticker: D05
  • Exchange: SGX
  • Founded: 1968
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: S$46.465b
  • Shares outstanding: 2.54b
  • Website: https://www.dbs.com

Number of Employees


Location

  • DBS Group Holdings Ltd
  • Tower 3
  • DBS Asia Central @ Marina Bay Financial Centre
  • Singapore
  • 18982
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DBSD.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJan 1985
DBSD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 1999
D05SGX (Singapore Exchange)YesOrdinary SharesSGSGDSep 1999
DEVLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1999

Biography

DBS Group Holdings Ltd provides financial products and services in Singapore, Hong Kong, rest of Greater China, South and Southeast Asia, and internationally. It operates through Consumer Banking/Wealth Management, Institutional Banking, Treasury Markets, and Others segments. The Consumer Banking/Wealth Management segment offers banking and related financial services, including current and savings accounts, fixed deposits, loans and home finance, cards, payments, investment, and insurance products for individual customers. The Institutional Banking segment provides financial services and products for bank and non-bank financial institutions, government-linked companies, large corporates, and small and medium sized businesses. Its products and services comprise short-term working capital financing and specialized lending; cash management, trade finance, and securities and fiduciary services; treasury and markets products; and corporate finance and advisory banking, as well as capital markets solutions. The Treasury Markets segment is involved in structuring, market-making, and trading in a range of treasury products. The Others segment offers stock trading and Islamic banking services. The company operates approximately 280 branches across 18 markets. DBS Group Holdings Ltd was founded in 1968 and is headquartered in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 12:48
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.